Samsung Delays Chip Factory Plans in Texas

Samsung Electronics has postponed the delivery of crucial chipmaking equipment from ASML for its $17 billion factory in Taylor, Texas, due to a lack of major customers for the project. This delay, which involves advanced extreme ultraviolet (EUV) lithography machines essential for producing high-performance chips, poses a significant setback to Samsung's strategy to diversify into contract chip manufacturing amid increasing competition from TSMC and SK Hynix. The postponement has forced Samsung to reevaluate its supplier orders and staffing, raising concerns of the factory potentially becoming a 'stranded asset'. The company had aimed to commence mass production this year, but has now pushed the timeline to 2026. Meanwhile, ASML has also revised its sales forecasts downward, reflecting a broader market slowdown outside of AI-driven demand. The situation highlights the challenges Samsung faces in an increasingly competitive semiconductor landscape.